Binance Invests in Troubled Korean Crypto Exchange, Aims to Rebuild Industry
• Binance has made a „meaningful“ investment in Gopax, a licensed crypto exchange based in South Korea.
• This marks Binance’s return to the Korean crypto market after two years of absence.
• The investment is part of Binance’s Industry Recovery Initiative (IRI), which aims to help rebuild the local cryptocurrency and blockchain industry.
Binance Returns to Korean Crypto Market
Binance, one of the world’s largest cryptocurrency exchanges, announced on Friday that it has invested in Gopax, a licensed crypto exchange based in South Korea. This marks Binance’s return to the Korean crypto market after two years of absence.
Gopax in Trouble Following Collapse of Crypto Exchange FTX
Gopax fell into trouble following the collapse of crypto exchange FTX and the bankruptcy filing of crypto lender Genesis Global. As a consequence, Gopax halted withdrawals from its decentralized finance (defi) service „Gofi“. Since then, Gopax has been working closely with local regulators and industry partners in an effort to raise funds for affected users.
Binance Invests in Troubled Crypto Exchange
Binance explained that as part of this transaction, they would inject capital into Gopax with the objective of securing all potential Gofi users‘ withdrawal requests against all staked deposits, including interest. Although the terms of the deal have not been disclosed, Binance Chief Business Officer Yibo Ling said they had taken a „meaningful“ equity stake in Gopax.
Industry Recovery Initiative (IRI)
The investment is part of Binance’s Industry Recovery Initiative (IRI), launched last year following several challenges faced by cryptocurrency firms such as collapses and bankruptcies. The initiative aims to support promising companies that were negatively impacted by these events and help rebuild the local cryptocurrency and blockchain industry.
By investing in troubled Korean cryptocurrency exchange Gopax, Binance is showing its commitment to helping rebuild the local cryptocurrency and blockchain industry through its Industry Recovery Initiative (IRI).